South African insurers scammed by an intermediary

More than 40 South African insurers have lost nearly 1.5 billion ZAR (106 million USD) due to the misappropriation of premiums by the insurance intermediary Insure Group Managers (IGM).

The said intermediary secretly invested the premiums collected from customers in illiquid and high-risk assets.

The supervisory authority, the Financial Sector Conduct Authority (FSCA), has described this conduct as illegal and suspended two IGM managers from any activity in the sector for five years.